Poland's tax authority – Krajowa Administracja Skarbowa (the National Revenue Administration) – has introduced expanded reporting obligations that directly affect foreign companies operating in, or generating income from, Poland. These changes entered into force in early 2025. International businesses that have not yet reviewed their Polish tax positions are now exposed to financial penalties and reputational risk with the Polish authorities.
Poland's new tax reporting regime requires foreign entities with a taxable presence or Polish-source income to submit enhanced disclosures on corporate income tax positions, withholding tax collections, and permanent establishment status. The obligations apply from the 2025 tax year. With the primary compliance deadline falling within the standard corporate tax filing window. typically the end of the third month following the close of the entity's financial year. Non-compliant entities face surcharges, interest, and heightened audit exposure.
This alert identifies the key changes, the business categories affected, and the immediate steps that international companies should take now.
What changed – the regulatory development and effective date
Poland's tax legislation has been amended to require more granular annual disclosures from foreign entities. The changes affect three core areas.
First, the corporate income tax regime now requires foreign entities with Polish-source income to submit a supplementary information form alongside the standard annual return. This form captures data on income allocation, applied tax treaty positions, and any claimed exemptions. The obligation applies from the 2025 financial year – meaning the first enhanced filings are due in 2026 for entities whose financial year aligns with the calendar year.
Second, the withholding tax rules have been tightened. Entities paying dividends, interest, royalties, or service fees to foreign recipients must now document the beneficial ownership verification process in greater detail. The remitter – not the recipient – carries the primary compliance burden. Failure to collect withholding tax at the correct rate, or to file the required verification records, triggers joint liability for the unpaid tax.
Third, Poland's rules on permanent establishment have been restated in the amended legislation. Foreign entities must now affirmatively assess and document whether their Polish activities – including those conducted through local agents, project offices, or digital service delivery – create a taxable permanent establishment. A self-assessment report must accompany the annual filing where a permanent establishment position is taken or disclaimed.
The effective date for all three strands is 1 January 2025. For calendar-year entities, the first enhanced filing deadline is 31 March 2026.
Who is affected – threshold criteria and business categories
The new obligations apply broadly. Foreign entities should assume they are within scope unless they can confirm otherwise. The categories most directly affected are:
- Foreign companies receiving dividends, interest, royalties, or management fees from Polish resident entities
- Non-resident businesses with employees, agents, or project teams physically operating in Poland
- Foreign e-commerce and digital service providers generating revenue from Polish customers above the prescribed annual threshold
- Foreign holding structures that own Polish subsidiaries and have historically relied on tax treaty exemptions to reduce withholding tax to zero
The threshold for triggering the supplementary corporate income tax disclosure is set at a modest level of Polish-source gross income. meaning the overwhelming majority of foreign entities with any commercial activity in Poland will fall within scope. Entities that previously treated Poland as a purely passive investment location – receiving only dividend flows from a subsidiary – are now caught by the beneficial ownership verification requirements on the withholding tax strand.
Tax residency also matters here. Where a foreign entity's tax residency is in a jurisdiction that has a bilateral tax treaty with Poland, treaty relief remains available. but it must now be actively claimed and documented in the supplementary form. A treaty position that was once assumed will no longer be accepted without supporting evidence filed with the return.
For a detailed review of how these obligations interact with your Polish corporate structure, see our corporate law advisory service for Poland.
To receive an expert assessment of your Polish tax exposure under the new reporting rules, contact us at info@ferrazwhitmore.com.
What to do now – immediate actions for international companies
Five actions should be taken before the March 2026 filing deadline – and several should begin immediately.
1. Map all Polish-source income flows. Identify every payment stream between the foreign entity and any Polish counterparty. This includes intragroup payments, licensing arrangements, service fees, and passive income. Each stream must be assessed against the new disclosure requirements.
2. Conduct a permanent establishment review. Any foreign entity with personnel, equipment, or agents in Poland must assess whether a permanent establishment exists under Polish domestic tax legislation and the applicable tax treaty. If the answer is uncertain, a formal position paper should be prepared before the filing date.
3. Verify beneficial ownership documentation for withholding tax relief. Where a foreign entity receives Polish-source income subject to reduced withholding tax under a treaty, the Polish remitter must hold current beneficial ownership documentation. Certificates of tax residency must be dated within the relevant financial year.
4. Review the corporate income tax filing obligation. Entities that have historically filed only a simplified Polish return. or relied on the subsidiary to handle all Polish tax filings. should now assess whether a supplementary disclosure obligation applies at the foreign entity level.
5. Engage local counsel immediately. The supplementary forms are new, and the administrative guidance from the National Revenue Administration is still developing. Engaging a lawyer in Poland with cross-border tax experience – combined with your home-jurisdiction advisors – reduces the risk of inconsistent positions across two filing systems. As a law firm in Poland advising international clients, Ferraz & Whitmore can coordinate that cross-border review.
For a comprehensive analysis of the withholding tax and corporate income tax implications under the new rules, our tax law advisory for Poland sets out the full procedural picture. You may also find our parallel update on tax reporting changes in Portugal relevant if your group has Iberian and Central European exposure simultaneously.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our tax law practice covers the full spectrum of cross-border tax matters. including corporate income tax structuring, withholding tax compliance. Permanent establishment analysis. Additionally, tax treaty application. across both EU civil law systems and common law jurisdictions. Our team has advised multinational groups on tax reporting obligations before European revenue authorities and participated in cross-border practice groups focused on Central and Eastern European tax developments. The firm's dual tradition – Portuguese civil law expertise combined with English common law heritage – gives our clients a single point of coordination for multi-jurisdictional tax compliance challenges. To discuss how the new Polish reporting requirements affect your group structure, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.